Correlation Between Osino Resources and Roscan Gold

Can any of the company-specific risk be diversified away by investing in both Osino Resources and Roscan Gold at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Osino Resources and Roscan Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Osino Resources Corp and Roscan Gold Corp, you can compare the effects of market volatilities on Osino Resources and Roscan Gold and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Osino Resources with a short position of Roscan Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Osino Resources and Roscan Gold.

Diversification Opportunities for Osino Resources and Roscan Gold

-0.7

Correlation Coefficient

Osino Resources  Roscan Gold

Excellent diversification

The 3 months correlation between Osino and Roscan is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Osino Resources Corp and Roscan Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roscan Gold Corp and Osino Resources is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Osino Resources Corp are associated (or correlated) with Roscan Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roscan Gold Corp has no effect on the direction of Osino Resources i.e., Osino Resources and Roscan Gold go up and down completely randomly.

Pair Corralation between Osino Resources and Roscan Gold

Assuming the 90 days horizon Osino Resources Corp is expected to generate 0.41 times more return on investment than Roscan Gold. However, Osino Resources Corp is 2.46 times less risky than Roscan Gold. It trades about 0.12 of its potential returns per unit of risk. Roscan Gold Corp is currently generating about 0.0 per unit of risk. If you would invest  77.00  in Osino Resources Corp on September 4, 2024 and sell it today you would earn a total of  63.00  from holding Osino Resources Corp or generate 81.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	74.49%
Values	Daily Returns

Osino Resources Corp  vs.  Roscan Gold Corp

Osino Resources Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Osino Resources Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, Osino Resources is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Roscan Gold Corp

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Roscan Gold Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental indicators, Roscan Gold may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Osino Resources and Roscan Gold

The main advantage of trading using opposite Osino Resources and Roscan Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Osino Resources position performs unexpectedly, Roscan Gold can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Roscan Gold will offset losses from the drop in Roscan Gold's long position.

The idea behind Osino Resources Corp and Roscan Gold Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.